Sanoma Oyj · OMXHEX:SANOMA

Sanoma Oyj — Q2 2014 Earnings Presentation

35 slides from Sanoma Oyj's earnings presentation, Jul 25, 2014

  1. Slide 1: Q2 2014 Interim Report

    Q2 2014 Interim Report Harri-Pekka Kaukonen, President and CEO Kim Ignatius, CFO 25 July 2014

  2. Slide 2: Strategy proceeding well – new media sales grew by 6.7%

    Strategy proceeding well – new media sales grew by 6.7% Good quarter supported by timing shifts Q2 2014 – signs of improving operating performance  Organic growth -1.0% vs. -6.3% in Q1 2014  Dutch TV strong despite FIFA World Cup  Focus titles in the Netherlands performed better than non-focus ti

  3. Slide 3: Market environment improved in the Netherlands

    Market environment improved in the Netherlands Advertising market – split by type  Strong momentum in TV advertising continued 49% in the Netherlands 32% 32% 30% 27%  Finnish advertising market remained sluggish for 15% 8% 6% print and TV but online and radio grew well Print TV Online Radio Nether

  4. Slide 4: Sanoma Redesign – strategic update

    Sanoma Redesign – strategic update Recent developments Strategic #1 consumer media company in the Netherlands and Finland objectives #1 learning company in all operating markets Lead and Consumer media (39%* of net sales in new media in the NL and FIN) grow strategic  NL: New media sales compensate

  5. Slide 5: A few highlights of Q2

    A few highlights of Q2

  6. Slide 6: Netherlands – SBS Broadcasting the fastest growing broadcaster

    Netherlands – ”SBS Broadcasting the fastest growing broadcaster” 24 20 2013 2014 2013 16 Viewing share in May 22.2 % 12 Highest since September 2011 8 4 0 January February March April May June Prime-time share of national viewing in target group 20-54 years 6 25 July 2014 Q2 2014 Interim Report

  7. Slide 7: Learning – Malmberg Netherlands growing supported by new digital solutions

    Learning – Malmberg Netherlands growing supported by new digital solutions  Growth in Learning Netherlands +4% in H1  Introduction of adaptive personalised learning solutions – Primary Education: More than 1 million pupils work with Malmberg’s learning platform – Secondary Education: Successful la

  8. Slide 8: Cost savings programme well on track

    Cost savings programme well on track  EUR 100 million cost savings programme – Run-rate is now over EUR 50 million – Non-recurring items related to savings programme around EUR 51 million – Actual savings in Q2 EUR 12 million – Finland contributing to large part of savings – Savings targeted at fix

  9. Slide 9: Summary of operating performance

    Summary of operating performance Last 12 months* – New media sales EUR 530 million in Media Finland and Media Netherlands Three Strategic Business Units Media Finland Media Netherlands Learning Other*** Sanoma Digital (pure) Media Belgium Net sales EUR 100 million Four consumer media platforms Media

  10. Slide 10: Financials

    Financials SaAN OM CMecautcaelle|

  11. Slide 11: Income Statement

    Income Statement Restated* Restated* Restated* EUR million 4–6/2014 4–6/2013 1–6/2014 1–6/2013 1–12/2013 Net sales 533.1 558.2 971.3 1,028.8 2,083.5 EBITDA excl. non-recurring items 133.4 135.5 198.9 205.1 436.6 of net sales 25.0% 24.3% 20.5% 19.9% 21.0% Amortisations related to TV programme rights

  12. Slide 12: Net sales development – H1 2014

    Net sales development – H1 2014 H1 2014 1–6/2014 1–6/2014 1–6/2013 organic EUR million EUR million EUR million growth, % Group 971.3 1,028.8 -3.5 1,028.8 -5.7 -15.2 -1.1 -35.4 Media 971.3 326.0 331.7 -2.0 Netherlands Media Finland 323.7 338.9 -4.5 Learning 148.1 149.2 +1.6 Other & elim. 173.6 209.0

  13. Slide 13: EBIT excl. non-recurring items development – H1 2014

    EBIT excl. non-recurring items development – H1 2014 H1 2014 EUR million 1–6/2014 1–6/2013 EUR million Group 62.3 65.5 +4.3 -6.0 65.5 +2.7 -4.2 Media Netherlands 29.8 25.6 62.3 Media Finland 7.9 14.0 Learning 34.2 31.5 Other & elim. -9.6 -5.5 Media + Cost efficiency Netherlands: + Lower TV costs & h

  14. Slide 14: Free cash flow

    Free cash flow Cash flow from operations less cash CAPEX Restated* Restated* Restated* EUR million 4–6/2014 4–6/2013 1–6/2014 1–6/2013 1–12/2013 EBITDA excl. non-recurring items 133.4 135.5 198.9 205.1 436.6 TV programme costs -41.5 -32.1 -86.3 -87.9 -186.4 Prepublication costs -7.1 -8.1 -14.2 -14.6

  15. Slide 15: Capital structure

    Capital structure 30 June 2014  Net debt EUR 950 million (Q2 2013: 1,408) Net debt / EBITDA adjusted 4,7 4,3 4,2 – Net debt / EBITDA adjusted 4.2 times (5.5*) 3,6 <3.5  EBITDA adjusted: 12-month rolling EBITDA excl. non- 2,8 recurring items, where acquired operations are included and 2,5 divested

  16. Slide 16: Structural changes have negative impact on EBIT in H2 2014

    Structural changes have negative impact on EBIT in H2 2014 Some negative elements impacting EBIT:  Media Finland – Sale and leasebacks increase rent costs, net EBIT impact around EUR 5 million  Learning – Timing shifts between quarters – Sale of Hungarian operations, around EUR 4 million in Q3 201

  17. Slide 17: Group outlook for 2014 and mid-term (unchanged)

    Group outlook for 2014 and mid-term (unchanged) Outlook 2013 2014 Mid-term Main drivers for the 2014 EBIT outlook actuals outlook outlook + EUR 100 million gross cost savings programme, will realise (IFRS 11 restated) (2016->) partly in 2014 - Underlying development in print circulation and print ad

  18. Slide 18: Q&A

    Q&A

  19. Slide 19: Appendix 1

    Appendix 1 ERMA] setthe world

  20. Slide 20: Net sales split – last 12 months

    Net sales split – last 12 months Net sales EUR 2,026 million | EBIT excl. nri EUR 151.9 million Media operations in total Learning Netherlands and Finland 83% of net sales Diversified portfolio with five key markets 2% Netherlands 6% 9% 10% Poland Netherlands 12% 32% 42% Finland Finland Belgium Belg

  21. Slide 21: Net sales development – Q2 2014

    Net sales development – Q2 2014 Q2 2014 4–6/2014 4–6/2014 4–6/2013 organic EUR million EUR million EUR million growth, % Group 533.1 558.2 -1.0 558.2 +0.5 -6.0 +3.4 -22.9 Media 533.1 180.0 179.6 -0.2 Netherlands Media Finland 164.6 170.7 -3.5 Learning 106.9 103.5 +5.5 Other & elim. 81.5 104.4 -6.7 M

  22. Slide 22: EBIT excl. non-recurring items development – Q2 2014

    EBIT excl. non-recurring items development – Q2 2014 Q2 2014 EUR million 4–6/2014 4–6/2013 EUR million Group 66.3 68.1 68.1 -3.6 +5.3 -2.5 66.3 Media Netherlands 21.4 25.0 -1.0 Media Finland 7.5 8.4 Learning 41.2 35.9 Other & elim. -3.7 -1.2 Media + Cost efficiency Netherlands: - Print sales Media +

  23. Slide 23: Media Netherlands

    Media Netherlands Key figures* EUR million 4–6/2014 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 180.0 146.0 685.8 194.1 160.0 179.6 152.2 Digital 82.5 64.0 291.0 88.2 64.8 76.5 61.6 Online & mobile 20.0 18.7 76.9 24.3 17.4 17.7 17.4 TV 62.5 45.3 214.1 63.8 47.3 58.8 44.2 Print 8

  24. Slide 24: Media Finland

    Media Finland Key figures* EUR million 4–6/2014 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 164.6 159.0 675.4 179.0 157.5 170.7 168.2 Digital 53.4 48.6 185.9 54.5 37.5 51.7 42.2 Online & mobile 22.1 21.3 74.7 21.7 15.8 20.5 16.7 TV & radio 31.4 27.3 111.2 32.8 21.7 31.2 25.5 Pri

  25. Slide 25: TV – net sales and EBIT seasonality

    TV – net sales and EBIT seasonality 2010 - 2013 average for Dutch and Finnish TV* Net sales split EBIT** split 8% 22% 29% 30% 43% 29% 20% 19% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes SBS Netherlands (excluding PPA amortization) and Nelonen Media Finland. **Excluding non-recurring items. 25 25 July 2014 Q2

  26. Slide 26: Magazines – net sales and EBIT seasonality

    Magazines – net sales and EBIT seasonality 2010 - 2013 average for Dutch and Finnish Magazines* Net sales split EBIT** split 18% 23% 27% 29% 28% 26% 24% 25% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Includes Dutch and Finnish operations, excluding TV guides. 2010-2012 not restated with IFRS 11 ‘Joint Arrangements’.

  27. Slide 27: Newspapers – net sales and EBIT seasonality

    Newspapers – net sales and EBIT seasonality 2010-2013 average for Newspapers (Finland) incl. digital business Net sales split EBIT* split 26% 25% 24% 29% 19% 24% 25% 28% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 27 25 July 2014 Q2 2014 Interim Report

  28. Slide 28: Sanoma Learning

    Sanoma Learning Key figures EUR million 4–6/2014 1–3/2014 FY 2013 10–12/2013 7–9/2013 4–6/2013 1–3/2013 Net sales 106.9 41.2 304.6 32.4 123.0 103.5 45.7 Netherlands 40.7 24.5 95.3 7.4 25.0 36.5 26.3 Poland 17.8 5.2 83.8 12.8 46.7 18.1 6.2 Finland 28.8 4.8 53.5 5.6 13.9 28.7 5.3 Belgium 13.6 1.9 33.8

  29. Slide 29: Learning – net sales and EBIT seasonality

    Learning – net sales and EBIT seasonality 2010-2013 average for Learning Net sales split EBIT* split in relative terms 12% 13% 34% 41% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 *Excluding non-recurring items. 29 25 July 2014 Q2 2014 Interim Report

  30. Slide 30: Appendix 2 – About owners and coverage

    Appendix 2 About owners and coverage

  31. Slide 31: Sanoma – largest shareholders

    Sanoma – largest shareholders % of shares 30 June 2014 and votes 1. Jane and Aatos Erkko Foundation 23.02 23.0% 2. Antti Herlin (Holding Manutas Oy: 8.16%, 9.40 Security Trading 1.23%, personal: 0.02%) 3. Robin Langenskiöld 7.54 4. Rafaela Seppälä 6.31 5. Helsingin Sanomat Foundation 3.50 6. Ilmarin

  32. Slide 32: Analyst coverage

    Analyst coverage  Carnegie Investment  Handelsbanken  Nordea Bank Capital Markets Sami Sarkamies Matti Riikonen Rasmus Enberg tel. +358 9 165 59928 tel. +358 9 6187 1231 tel. +46 8 701 5116 Nordea.com/markets Carnegie.fi Handelsbanken.com/  Pohjola  Danske Markets Equities capitalmarkets Kimmo

  33. Slide 33: Sanoma's IR team

    Sanoma’s IR team Mr Olli Turunen tel. +358 40 552 8907 [email protected] Ms Katariina Hed tel. +358 50 412 5120 [email protected] IR team’s joint email address: [email protected] 33 25 July 2014 Q2 2014 Interim Report

  34. Slide 34: Important notice

    Important notice The information above contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or future financial performance, including, but not limited to, expectations regarding market growth and development as well growth and profitability of

  35. Slide 35: sSqnomd

    sSqnomd

Sanoma — Q2 2014 Earnings Presentation on 6ix